• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16
  17. 17
    17
  18. 18
    18
  19. 19
    19
  20. 20
    20
  21. 21
    21
  22. 22
    22
  23. 23
    23
  24. 24
    24
  25. 25
    25
  26. 26
    26
  27. 27
    27
  28. 28
    28
  29. 29
    29
  30. 30
    30
  31. 31
    31
  32. 32
    32
  33. 33
    33
  34. 34
    34
  35. 35
    35

Opening your own business

Extracts from this document...

Introduction

'To see whether it is feasible to set up an online store selling cricket equipment at competitive prices'. Ayub Khan Contents Page Objectives Primary & Secondary Background Research Market Research Secondary Research Primary Research Questionnaire Questionnaire Analysis SWOT Analysis PEST Analysis Location Findings Costs Sales Forecasting Finance Cash flow Profit & Loss Account Ratio Analysis Evaluation 'To see whether it is feasible to set up an online store selling cricket equipment at competitive prices' Objectives Primary Objective: > To see whether it is feasible to open on-line store selling cricket equipment and accessories. The company will specialise ion cricket equipment from all major brands around the world. Secondary Objectives: > To identify a suitable company to rent a server from for the on-line store. > To identify suitable prices with good enough profit margins and which are competitive against all competitors. > To identify the initial cost of investment: * To find out suitable website set-up costs. * To identify suitable website running and maintenance costs. * To produce a sales forecast- by using the marketing data, primary and secondary statistics, I will aim to produce realistic sales income estimate. * To produce a Cash Flow forecast for yr 1 & 2- by combining first hand information from research and costs, and see how incoming and outgoing costs measure up against each other. * To construct a Profit & Loss Account- I will make a Profit & Loss account for both years so I can analyse differences between the two years, and what may have caused these to occur. > To identify a suitable storage location where the company will be set-up from. > To carry out detailed competitor analysis. > To find out relative information on suppliers. > To investigate and carry out research on Internet access and how many people shop online, and also the age group of the people who shop online, this will provide me with relevant data to see whether it is feasible to set up this business. ...read more.

Middle

* Low Cost quality pricing would be advantageous as more and more consumers might get attracted by this. Weaknesses: * The major weakness is that as the business will be operating online, consumers have access to the World Wide Web which means they can buy from any online store available. This means I will be competing against the whole world as my competition. * Another weakness will be ensuring consumers that it will be safe shopping online with my business as many will see it as a risk as it is a new business and will need to adapt quickly to gain consumer confidence. * Finally another weakness is that as it is a new business it will mean the business will have no experience and reputation which will be acquired to gain customer confidence in using my business. Opportunities: * The most important opportunity is the scale of growth the business has. This is mainly due to the business operating online which means if the business is successful it can lead to expansion throughout other countries, as at the moment it will only be through out the UK. * Another opportunity is that the business can expand its distribution service of current stock. They can do this by adapting into selling equipment for other sports such as Hockey and selling kits etc. This would lead to more customers and higher sales which would lead to higher net profit. * The business if successful has also got the opportunity to expand by developing their own cricket brand which can lead to huge success. They can kick start this by sponsoring professional cricket players to promote their product and by endorsing them as many brands do this already. Threats: * The main threat to the company is starting of the business by selling online. The company will need to gain customer confidence very quickly or it can lead to business failure. ...read more.

Conclusion

Products made in these countries can have profit margins up to 80% profit margins. Most companies selling cricket equipment do keep high profit margins above 65%, therefore I could still increase my profit margin by 5-10% to increase profit, but I need to take into consideration the fact that my USP is that I will be selling high quality products at low prices, so I need to ensure I keep my prices below competitors. Net Profit Margin: This ratio manages the relationship between the net profit (profit made after all overhead expenses have been deducted) and the level of turnover or sales made. Net Profit Margin = Net Profit / Turnover * 100 Net Profit Margin = 21,725 / 116,220 * 100 Net Profit Margin = 18.7% The higher the net profit margin the better also. This is because the net profit margin establishes whether the firm has been efficient in controlling its expenses. However the net profit margin of the business has come out to be quite low. A low net profit margin means that the overhead costs are too much or are increasing too quickly. In this case the net profit margin can be seen to be quite low because there are many over head costs and this can be due to the fact the business is new and hasn't adapted into the market yet. I feel that the net profit margin will eventually start to increase after the first few years when the overhead costs are gone lower because the business will be adapted and also the fact that whenever a new business is opened they start off with very high overhead costs, hence I feel there is nothing to worry about. The net profit margin can also be increased by raising sales revenue whilst keeping expenses low or even by reducing expenses whilst maintaining the same level of sales revenue. Evaluation: Recommendations: The business of selling online has potential to be a successful business and has a lot of scope to expand as proven by the above feasibility study. The report shows that ?? ?? ?? ?? 32 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. Strategic Analysis of Woolworths

    Therefore, Safeway Supermarket's sales are greater than Coles. Customer service One of the primary activities of Safeway Supermarket, which is customer service, is also one of the values that can be given to its customers. As discussed earlier, Safeway Supermarket's more experienced workers will more efficiently service its customers.

  2. Assignment 1, Starting a small business

    However, I can insure the health and safety of both the employees and customers by providing facilities such as: * Toilets - for staff and employees to use in their needs * Cautions - cautions and signs to create awareness, i.e.

  1. BTEC BUSINESS UNIT 2

    It may be that they are ahead of target but for the majority of the business they are behind! To update a Gannt chart or to change it could be a difficult and challenging job, it is hard to keep editing it and adding to it, professional software is the

  2. business planning unit 8

    more awareness and the market share increases by 10% within 8-10 months. I will consider of relocating the factory in a bigger premises as it will be required to produce a higher number of units to meet customer demand. Once my Aims are met I will be able to afford

  1. Marketing Analysis report for Clocky: The Runaway Alarm Clock

    a staying power, for example by introducing new functionalities or introducing a new series of design and features. Strategy: ?? Marketing Program: The Product: clocky(r) The Runaway Alarm Clock The alarm clock that runs away and hides when you don't wake up. Clocky gives you one chance to get up.

  2. For this assignment I have been asked to produce a new marketing strategy for ...

    There are different types of pricing methods, some are the followings: Cost-plus prices: This is fixing a price to a product by adding a certain percentage onto the cost of the product.

  1. Marketing Aims and Objectives - with examples from major companies.

    Improving the competitive edge will involve carrying out activities which will put the business ahead of their competition and at a slight advantage. For example, creating similar products at a cheaper manufacturing price and selling for lower amounts, increasing sales, profits and getting ahead of competition.

  2. Mcdonalds India. Porters Five Forces Model and Consumer Behaviour Analysis

    Product ? McDonald?s offerings are fast-food products that are delicious and hunger satisfying and at the same time easily consumable on-the-go owing to the small size and appropriate packaging. 1. Place ? McDonald?s has come up with outlets at many locations in a city.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work